Over 1.8 million deprived households access preferential loans

Government-enacted credit policies dedicated to impoverished families nationwide had given preferential loans worth over 38.4 trillion VND (1.71 billion USD) to more than 1.8 million needy households by the end of October, according to the Vietnam Bank for Social Policy (VBSP).

Under the programme, more than 1.77 million business households in disadvantaged areas received loans worth 37.4 trillion VND (1.66 billion USD).

Decision No.31/2007/QD-TTg regulates that the VBSP can provide businesses and productive households with a maximum loan of 30 million VND (1,335 USD) at a lending interest rate of 0.9 percent per month. However, based on funding resources, investment demand and the borrowers’ ability to repay, the VBSP can decide the specific loan size. But it should not exceed 100 million VND (4,450 USD).

Meanwhile, nearly 30,000 traders doing business in difficult areas were able to borrow over 1 trillion VND (44.5 million VND) from the VBSP. According to Decision No.92/2009/QD-TTg, individual customers with collateral can borrow up to 100 million VND (4,450 USD) while the number for business organisations is 500 million VND (22.250 USD).

The implementation of the Government’s credit policies in deprived areas has helped household businesses and organisations develop their production and business, making contributions to local socio-economic development.

(Source: VNA)